2003 CID Trends May 1, 2003. Office Market Trends Presentation. 2003 CID OFFICE TRENDS COMMITTEE. Lacy Howe, Peek/Howe Real Estate, Inc. – Chairman Dianne Bankston, Larry E. Bankston Appraisals Steve Legergne, Sealy & Falgoust Real Estate Branon Pesnell, NAI Latter & Blum
1. The LSU Office Market Study for Fall of 2002, indicates that although occupancy is down from Fall, 2001, there was at least 114,000 s.f. added to the A & B office inventory during this time period.What’s “up” with that? The “Opportunity Rate”
“Bon Carré will be full in 12-18 months”- Ben Johnson and Tom Cook, Trends 2001
2. Other than “build-to-suit” any hope for speculative general office space?Is it enough to really care?
3. Competing on a Level Playing Field?What do Tax Incentives and Foundations have to do with developing prime real estate?
4. Ascension and Livingston are the fastest growing parishes in the State. Will office follow?If so, any significant players relocating?Who are the significant players?
5. Interest Rates have been near historically low levels for a long time. When they go up – what affect will they have on:A. Leasing ?B. Sales?C. The highly leveraged?
6. According to the LSU Study, downtown Baton Rouge appears to be outperforming most other markets;- Is this really happening?- What continued affect will downtown have on suburban markets?- What will pop its “bubble”?
7. Many Changes are occurring in these fields:A. MedicalB. Engineering / EnvironmentalC. Dot-ComD. Sublease- Who is occupying space?- What are their plans?- Who’s it going to affect?
8. Where is the “Growth Spot” for office in the next 12 months?